The demand for grown diamonds is growing, but a number of production factors hamper the development of the market, according to a press release from the consulting company Frost & Sullivan.
In the jewelry industry, the demand for colorless diamonds is higher than for similar stones of other colors. The inability to grow colorless diamonds has become one of the reasons why artificial diamonds have not become widespread in the jewelry industry in the past two decades. However, thanks to the latest technological developments, the situation has radically changed.
According to the Frost & Sullivan study "The Diamond Growing Greenhouses," which surveyed six of the largest diamond buyer countries, the potential demand for grown diamonds in these markets is quite large, although there are a number of factors associated with A proposal that could have a negative impact on the prospects for the development of the market.
According to the report of Frost & Sullivan, the main reason for buyers' interest in purchasing grown diamonds is changing their preferences towards environmentally friendly and socially responsible products. In addition, an important role is played by increasing consumer awareness of the differences and similarities between grown and mined diamonds.
However, despite the interest from buyers, the industry faces a number of problems. Among them - low growth rates of production capacities in diamond growing centers in Russia, China, Malaysia, Singapore, India, the USA and the Netherlands, high transaction costs and equipment costs, technological aspects.
"Every day we are trying to find ways to reduce costs. We need to think like producers and go beyond the research environment, "said Michael McMahon, CEO of SCIO Diamond Technology Corporation, the leading producer of cultivated diamonds.
The large amount of cash needed for the production of raw materials and the lack of knowledge of the creation of equipment and specific work processes affect the production potential. Mr. McMahon emphasizes: "Technology is kept secret. The process of developing new technological solutions is quite complex, and before these solutions are implemented in mass practice, it may take several years. "